Bonds Demand Returned Amid Risk-On

STATE OF THE MARKETS

Bonds demand returned amid risk-on. More than $700 billion flowed into US bond futures in various maturities as US equities continue to surge higher on Wednesday. Dow (+1.46) made an all time high at 32,389.50 while S&P500 (+0.60%) gapped higher and Nasdaq (-0.04%) remained under pressure. The benchmark US 10Y yields continued lower, to close below 1.51% as safe-haven flows continued.

Crude recovered earlier losses, closed above $64.40/bl, as demand outlook improved more than the surge in inventories due to last month Texas winter storm. More than 13 million barrels were added according to EIA. Gold continued higher, closed above $1,726.00/oz, as markets repriced Dollar with the new $1.9T stimulus that will be signed this Friday.

Dollar continued to be bid lower, with DXY closed below $91.83, but remained supported by Swiss in the short-term as Sterling, Euro and the Comdolls advanced in demand. Dollar demand in the medium term edged lower while remained unchanged in the long term accounts. Risk sentiments remained relatively stable, with largest gain seen in Euro as ECB is expected to stand pat on Thursday.

G8 CURRENCIES SENTIMENTS

** ST refers to Short-Term which is daily turnover, MT is Medium Term which is weekly 
and LT refers to Long-Term which is monthly turnover.

WALL ST MOST ACTIVE

** % Change here refer to price

WALL ST TOP FLOWS

** % change here refers to volume

TOP 5 BLOCK ORDERS

OUR PICK – Cabot Oil & Gas (COG, NYSE)

Heavy accumulation is going on. With economic outlook and oil demand improved, oil and gas companies are gaining in demand. Some are more than the others. While RRC, SWN and EOG has advanced more than 80% in price for the year; COG is close to only 10% and heavy accumulation is going on. The company continue to beat earning estimates for the past three quarters and 10% undervalued by S&P GMI standards. With dividend yields stands at 2.16% and 80% payout we like this stock.

Note: If you require fundamental reports for this stock, please contact your account manager or support@mfmsecurities.com for a copy.

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